financial statements bulletin - Wärtsilä

WÄRTSILÄCORPORATION

FINANCIAL STATEMENTSBULLETIN

2013

Resilient profitability and strong cash flow inchallenging markets

Fourth quarter highlights

• Order intake remained stable at EUR 1,351 million (1,357)• Net sales decreased 8% to EUR 1,411 million (1,533)• Book-to-bill 0.96 (0.89)• Operating result before non-recurring items EUR 201 million, or 14.2% of net sales (EUR 188 million

or 12.3%)• EBITA EUR 208 million, or 14.8% of net sales (EUR 198 million or 12.9%)• Earnings per share EUR 0.74 (0.62)• Cash flow from operating activities EUR 317 million (187)

Highlights of the review period January-December 2013

• Order intake decreased 1% to EUR 4,872 million (4,940)• Net sales decreased 1% to EUR 4,654 million (4,725)• Book-to-bill 1.05 (1.05)• Order book at the end of the period decreased 1% to EUR 4,426 million (4,492)• Operating result before non-recurring items EUR 520 million, or 11.2% of net sales (EUR 517 million

or 10.9%)• EBITA EUR 552 million, or 11.9% of net sales (EUR 552 million or 11.7%)• Earnings per share EUR 1.98 (1.72)• Cash flow from operating activities EUR 578 million (153)• Dividend proposal 1.05 euro per share

Events after the reporting period

• A Group-wide efficiency programme was announced on 29 January 2014

Björn Rosengren, President and CEO“Wärtsilä’s performance in 2013 was impacted by the continued uncertainty in the global economy.Due to unfavorable exchange rates and some delayed deliveries, the net sales development wasslightly weaker than expected. However, profitability remained resilient despite the lower level of sales.Supported by a strong fourth quarter and a focus on cost control, our full year operational profitabilityreached 11.2%. Cash flow from operating activities developed well, increasing to EUR 578 millionduring the year. There was significant improvement in the marine markets during 2013, and orderingwas active in all major vessel segments. In the power plant markets delays in customer decision-making continued. This impacted our Group order intake levels, which decreased by 1% compared tothe previous year. The service markets remained stable. Long-term agreements continue to be astrategic focus area for the Services business, and I am pleased that several such contracts weresigned during the year.

WÄRTSILÄ CORPORATION / FINANCIAL STATEMENTS BULLETIN 2013 2

WÄRTSILÄ CORPORATION FINANCIAL STATEMENTS BULLETIN 2013

Our market outlook for 2014 remains cautious, although a slight improvement may be seen in certainareas. Based on our current order book and project pipeline we expect some growth in net salesduring 2014 and profitability to remain at a similar level to that of 2013.”

Wärtsilä's prospects for 2014Wärtsilä expects its net sales for 2014 to grow by 0-10% and its operational profitability (EBIT% beforenon-recurring items) to be around 11%.

Key figures

RestatedRestated33 RestatedRestated33

MEURMEUR 10-12/201310-12/2013 10-12/201210-12/2012 ChangeChange 1-12/20131-12/2013 1-12/20121-12/2012 ChangeChange

Order intake 1 3511 351 1 357 0% 4 8724 872 4 940 -1%

Order book at the end of the period 4 4264 426 4 492 -1%

Net sales 1 4111 411 1 533 -8% 4 6544 654 4 725 -1%

Operating result (EBITA)11 208208 198 5% 552552 552 0%

% of net sales 14.814.8 12.9 11.911.9 11.7

Operating result (EBIT)2 201201 188 7% 520520 517 1%

% of net sales 14.214.2 12.3 11.211.2 10.9

Profit before taxes 181181 162 507507 453

Earnings/share, EUR 0.740.74 0.62 1.981.98 1.72

Cash flow from operating activities 317317 187 578578 153

Net interest-bearing debt at the end of the period 276276 567

Gross capital expenditure 134134 513

Gearing 0.150.15 0.32

1 EBITA is shown excluding non-recurring items of EUR 20 million (34) and intangible asset amortisation related to acquisitions ofEUR 32 million (35) during the review period January-December 2013. During the fourth quarter, non-recurring items amounted toEUR 9 million (17) and intangible asset amortisation related to acquisitions to EUR 8 million (10).2 EBIT is shown excluding non-recurring items.3 Figures have been restated due to changes in pension accounting (IAS 19 Employee benefits).

Market development

Power Plants

Moderate activity in power generation markets

Activity in the overall power generation markets declined during 2013, as macro-economic volatilitycontinued to cause delays in investment decisions throughout the year. Customer decision-making



was further impacted by the significant exchange rate fluctuations seen in multiple emerging marketcurrencies during the second and third quarters. Still, economic growth in the emerging marketscontinued to support demand for new power generation capacity. Wärtsilä’s power plant quotationactivity was higher in 2013 than during the previous year, although the level of quoted MWs decreasedsomewhat during the fourth quarter. Activity remained focused on natural gas based generation.

Power Plants market share

During the first half of 2013, global orders for natural gas and liquid fuel based power generation(including all prime mover units of over five MW) totalled 18.8 GW, a decrease of 35% compared tofirst half 2012 (28.8). Wärtsilä's share represents 5.8% of the market (4.9%).

Ship Power

Improvement in marine market activity

The total number of new registered vessel contracts in 2013 was 2,201. Market activity improvedsignificantly compared to 2012, when the volume for known contracts was 1,090 vessels. During thefourth quarter of 2013, 633 contracts for new vessels were registered. Ordering was active in all majorvessel segments, resulting in a more evenly spread contracting mix compared to the previous year.

Counter-cyclical ordering played an important role in 2013. Competitive new building prices and theincreased fuel efficiency of modern vessels attracted investments in merchant vessels. Notable activitywas seen in the product tanker, LPG carrier, and large containership segments. The gas carrier market(LNG carriers and LPG carriers) recorded 39 contracts during the fourth quarter of 2013, bringing thetotal for the year to 158 contracts. The contracting of mobile drilling units was positive, with activeordering of jack-up rigs. Contracting activity in the anchor handling tug supply and platform supplyvessel segments was lower than in recent years.

China and South Korea captured respectively 41% and 33% of the contracts confirmed during 2013 interms of compensated gross tonnage, while Japan secured 15%.

Ship Power market shares

Wärtsilä’s share of the medium-speed main engine market increased to 52% (49% at the end of theprevious quarter). The market share in low-speed engines remained at 10%, while in auxiliary enginesthe market share decreased slightly to 4% (10% and 5% respectively at the end of the previousquarter).

Services

Stable development in the service markets

Service market activity developed well in the fourth quarter of 2013, in line with typical seasonality.There was an improvement in demand from marine customers, and markets were especially activein the Norwegian offshore and the US cruise segments. During 2013, the overall service marketdevelopment was stable. The pick-up in activity during the fourth quarter compensated for the slightlyslower beginning of the year. The demand for power plant related services remained at a good levelthroughout the year, and activity was healthy especially in Africa. The overall marine service activitywas satisfactory.



At the end of 2013, Wärtsilä’s installed base totalled 182,000 MW. The marine installed basedecreased slightly due to the scrapping of merchant vessels with 2-stroke engines. This developmentwas compensated for by the continued increase in the 4-stroke installed base, particularly in powerplant installations.

Order intake

Fourth quarter order intake

Wärtsilä’s order intake for the fourth quarter of 2013 remained stable at EUR 1,351 million (1,357). Inrelation to the previous quarter, Wärtsilä’s order intake increased by 23% (EUR 1,097 million in thethird quarter of 2013). The fourth quarter book-to-bill ratio was 0.96 (0.89).

Power Plants’ fourth quarter order intake totalled EUR 409 million (471), which was 13% less than forthe corresponding period last year. Compared to the previous quarter, order intake increased by 57%(EUR 261 million in the third quarter of 2013). Significant orders were received from Indonesia andMauritania.

The fourth quarter order intake for Ship Power totalled EUR 462 million (339), an increase of 36%compared to the corresponding period last year. Compared to the previous quarter, order intakeincreased by 22% (EUR 378 million in the third quarter of 2013). Ordering activity was highest in theoffshore and merchant segments. Ship Power’s merchant related orders included an order for WärtsiläX92 main engines to four container ships being built for Ciner Group based in Turkey, as well as anorder for Wärtsilä’s new low-speed, low pressure dual-fuel engine to two environmentally advancedtankers for Terntank Rederi A/S. Ship Power also received an order to supply complete dual-fuelpropulsion and LNG equipment to a new passenger ferry being built for Reederei Cassen Eils GmbHbased in Germany. The ordering of environmental solutions continued, with Ship Power receivingorders for 11 exhaust gas cleaning systems during the fourth quarter. The merchant segmentrepresented 44% of the fourth quarter order intake, while the offshore segment’s share was 37%.Special vessels and navy both accounted for 6% of the order intake, and the cruise & ferry segmentrepresented 5%. Other orders accounted for 2%.

Order intake for the Services business totalled EUR 457 million (543) in the fourth quarter, a decreaseof 16% compared to the corresponding period last year. Compared to the previous quarter, orderintake increased by 1% (EUR 454 million in the third quarter of 2013).

Review period order intake

The total order intake for the review period January-December 2013 was EUR 4,872 million (4,940),which represents a decrease of 1% compared to the corresponding period in 2012. The book-to-billratio for the review period was 1.05 (1.05).

For the review period January-December 2013, the Power Plants order intake totalled EUR 1,292million (1,515), a decrease of 15% compared to the previous year. This development is in line with thedecline in the global power generation markets. 82% of the orders received, measured in MW, werefor gas based power plants. In 2013, major orders were received for a 274 MW power plant fromJordan and a 220 MW power plant from Oregon, USA. Other important orders were received fromFinland, Russia and Indonesia.



Ship Power’s order intake increased by 14% to EUR 1,662 million (1,453) during January-December2013, reflecting the improvement in the marine market. Ordering was active in the offshore and specialtonnage segments, as well as in the merchant segment. In line with the Ship Power strategy, Wärtsiläreceived several orders for the delivery of integrated solutions, including ship design, propulsionmachinery, automation and other equipment. The ordering of environmental solutions picked upsomewhat and Wärtsilä was awarded an order for its AQUARIUS®UV ballast water managementsystem by Carboflotta Group, as well as exhaust gas cleaning system orders by TT-Line, Color Lineand Messina among others. A total of 41 exhaust gas cleaning systems for 17 vessels were orderedduring 2013. The interest in gas as a marine fuel continued throughout the year, and Ship Powerreceived many orders for dual-fuel engines and gas related systems. Among these was thestrategically interesting contract to supply a comprehensive solutions package, including the cargohandling system, the gas supply system, and the propulsion machinery, for a series of LNG carriersbeing built for the Danish operator Evergas. In the offshore segment, notable orders includedsupplying propulsion solutions for six new offshore pipe laying vessels being built for Subsea 7 andSeabras Sapura, as well as several orders for platform support vessels. The offshore segmentrepresented 42% of the review period order intake, while the merchant segment’s share was 34% andcruise & ferry accounted for 8%. The special vessels segment's share was 7% and navy represented6% of the order intake. Other orders accounted for 3%.

Services’ order intake for January-December 2013 decreased by 4% to EUR 1,885 million (1,961).During the review period, Wärtsilä signed important long-term operations and maintenanceagreements with power plant customers in Africa, Australia and the USA. Wärtsilä was also awarded aservice agreement by Viking Line for maintaining and servicing the gas-fuelled passenger ferry VikingGrace.

Order intake by business


Power Plants 409409 471 -13% 1 2921 292 1 515 -15%

Ship Power 462462 339 36% 1 6621 662 1 453 14%

Services 457457 543 -16% 1 8851 885 1 961 -4%

Order intake, total 1 3511 351 1 357 0% 4 8724 872 4 940 -1%

Order intake Power PlantsMWMW 10-12/201310-12/2013 10-12/201210-12/2012 ChangeChange 1-12/20131-12/2013 1-12/20121-12/2012 ChangeChange

Oil 9090 80 11% 444444 796 -44%

Gas 526526 652 -19% 1 9571 957 2 323 -16%

Renewable fuels 27

Order intake, total 615615 732 -16% 2 4012 401 3 146 -24%

Order intake in joint ventures

Order intake in the Wärtsilä Hyundai Engine Company Ltd joint venture company in South Korea, andthe Wärtsilä Qiyao Diesel Company Ltd joint venture company in China, producing auxiliary engines,totalled EUR 222 million (242) during the review period January-December 2013. Wärtsilä’s share ofownership in these companies is 50%, and the results are reported as a share of result of associatesand joint ventures.



Order bookThe total order book at the end of the review period stood at EUR 4,426 million (4,492), a decrease of1%. At the end of the review period, the Power Plants order book amounted to EUR 1,367 million(1,561), a decrease of 12%. The Ship Power order book stood at EUR 2,289 million (2,127), which is8% higher than at the same date last year. The Services order book decreased by 7% to EUR 751million (804).

Order book by business

MEURMEUR 31.12.201331.12.2013 31.12.201231.12.2012 ChangeChange

Power Plants 1 3671 367 1 561 -12%

Ship Power 2 2892 289 2 127 8%

Services 751751 804 -7%

Order book, total 4 4264 426 4 492 -1%

Net salesWärtsilä’s net sales for the fourth quarter decreased by 8% to EUR 1,411 million (1,533) compared tothe corresponding period last year. Net sales for Power Plants totalled EUR 468 million (568), adecrease of 18%. Ship Powers’ net sales for the fourth quarter was stable, totalling EUR 425 million(426). The fourth quarter net sales for Services totalled EUR 507 million (531), a decrease of 5%compared to the corresponding period last year.

Net sales for January-December 2013 decreased by 1%, totalling EUR 4,654 million (4,725). Thedevelopment was slightly weaker than the expected 0-5% net sales growth, mainly due tounfavourable exchange rates and some delayed deliveries during the fourth quarter. Power Plants’ netsales totalled EUR 1,459 million (1,498), a decrease of 3%. Ship Power’s net sales increased by 2%and totalled EUR 1,325 million (1,301). Net sales from the Services business totalled EUR 1,842 million(1,908), a decrease of 3%. The Services’ sales mix saw an increase in revenues from maintenanceservice and long-term contracts. Of the total net sales, Power Plants accounted for 31%, Ship Powerfor 28% and Services for 40%.

Of Wärtsilä’s net sales for January-December 2013, approximately 59% was EUR denominated, 24%USD denominated, with the remainder being split between several currencies.

Net sales by business


Power Plants 468468 568 -18% 1 4591 459 1 498 -3%

Ship Power 425425 426 0% 1 3251 325 1 301 2%

Services 507507 531 -5% 1 8421 842 1 908 -3%

Other 1111 7 2828 17

Net sales, total 1 4111 411 1 533 -8% 4 6544 654 4 725 -1%



Operating result and profitabilityThe fourth quarter operating result (EBIT) before non-recurring items was EUR 201 million (188), or14.2% of net sales (12.3). Including non-recurring items, the operating result was EUR 191 million(171) or 13.6% of net sales (11.1). The operating result (EBITA) excluding non-recurring items andintangible asset amortisation related to acquisitions was EUR 208 million (198), or 14.8% of net sales(12.9). During the fourth quarter, non-recurring items amounted to EUR 9 million (17), and intangibleasset amortisation related to acquisitions totalled EUR 8 million (10).

For the review period January-December 2013, the operating result (EBIT) before non-recurring itemswas EUR 520 million (517). This represents 11.2% of net sales (10.9), which is in line with the guidanceof around 11% profitability. Joint venture profitability developed well, which had a positive impact onthe Group’s operating result. Including non-recurring items, the operating result was EUR 500 million(483) or 10.7% of net sales (10.2). The operating result (EBITA) excluding non-recurring items andintangible asset amortisation related to acquisitions was EUR 552 million (552) or 11.9% of net sales(11.7). During the review period January-December 2013, Wärtsilä recognised intangible assetamortisation related to acquisitions of EUR 32 million (35) and EUR 20 million of non-recurring items(34). Non-recurring items related to restructuring measures and discontinued operations.

In March, Wärtsilä sold its holding of 1,987,940 shares in Sato Oyj, for EUR 27 million. Wärtsilärecorded a capital gain of EUR 25 million on this sale. The tax on the capital gain is EUR 6 million.

Financial items amounted to EUR -19 million (-31). Net interest totalled EUR -14 million (-18). Dividendsreceived totalled EUR 1 million (2). Profit before taxes amounted to EUR 507 million (453). Taxesamounted to EUR 113 million (109), implying an effective tax rate of 22%. The profit for the financialperiod amounted to EUR 393 million (344). Earnings per share were 1.98 euro (1.72) and equity pershare was 9.35 euro (8.95). Return on investment (ROI) was 21.2% (20.4). Return on equity (ROE) was21.4% (20.1).

Balance sheet, financing and cash flowWärtsilä’s fourth quarter cash flow from operating activities amounted to EUR 317 million (187). ForJanuary-December 2013, the cash flow from operating activities was EUR 578 million (153). Theimprovement in cash flow is mainly due to the favourable development in working capital, whichtotalled EUR 313 million at the end of the period (465). Advances received at the end of the periodtotalled EUR 913 million (695). Cash and cash equivalents at the end of the period amounted to EUR388 million (225).

Wärtsilä had interest-bearing debt totalling EUR 665 million (794) at the end of December 2013. Thetotal amount of short-term debt maturing within the next 12 months was EUR 94 million. The fundingprogrammes included Finnish Commercial Paper programmes totalling EUR 800 million, of which EUR14 million was in use. Net interest-bearing debt totalled EUR 276 million (567).

The funding programmes at the end of December 2013 included long-term loans of EUR 571 million,committed undrawn long-term loans totalling EUR 100 million, and unutilised Committed RevolvingCredit Facilities totalling EUR 599 million.



The solvency ratio was 43.9% (41.3). Gearing decreased to 0.15 (0.32) as a result of good cash flowdevelopment. Key figures for the comparison period have been restated due to changes in pensionaccounting (IAS 19 Employee benefits). The impact is described in the IFRS amendments section.

Capital expenditureCapital expenditure for 2013 was in line with depreciation and amortisations. Gross capital expenditurein the review period totalled EUR 134 million (513), comprising EUR 5 million (402) in acquisitions andinvestments in securities, and EUR 129 million (111) in intangible assets and property, plant andequipment. Investments related mainly to product development and expansion of manufacturingcapacity in key emerging markets. The comparison period’s gross capital expenditure includes theacquisition of Hamworthy plc. Depreciation, amortisations and impairment for the review periodamounted to EUR 123 million (139).

PersonnelWärtsilä had 18,663 (18,887) employees at the end of December 2013. On average, the number ofpersonnel for January-December 2013 totalled 18,749 (18,930). Power Plants employed 1,053 (932)people. Ship Power employed 3,612 (2,139) people, Services 10,785 (11,163) and PowerTech 2,449(3,811). The increase in the number of Ship Power employees and decrease in the number ofPowerTech employees relates mainly to changes in the organisational set up, which became effectivein 2012.

Of Wärtsilä’s total number of employees, 20% (19) were located in Finland and 36% (36) elsewhere inEurope. Personnel employed in Asia represented 31% (32) of the total.

StrategyWärtsilä aims to be the leader in complete lifecycle power solutions for the global marine markets andselected energy markets worldwide. We see growth opportunities in gas power plants as part of ourSmart Power Generation concept, in gas-fuelled engines and related systems for the marine market,as well as in medium-scale LNG infrastructure development. We also seek growth in environmentalsolutions, including exhaust gas cleaning systems for SOx removal and ballast water managementsystems. Our strengths are our technological leadership, an integrated product and service offering,our close and long-standing customer relationships, and our unparalleled global presence. With ourproduction and supply chain management we constantly seek ways to maintain cost efficiency andhigh quality – often in co-operation with leading industrial partners in our key growth markets. Ourstrong focus on R&D allows us to stay at the forefront of technology and innovation in our industry.

We are determined to capture growth opportunities within our end markets, while maintaining a solidprofitability.



Strategic projects, joint ventures and expansion of thenetworkConstruction of the new production facilities for Wärtsilä Yuchai Engine Co., Ltd, the joint ventureowned 50/50 by Wärtsilä and Yuchai Marine Power Co. Ltd., is proceeding according to plan. Thecompany will manufacture Wärtsilä 20, Wärtsilä 26 and Wärtsilä 32 medium-speed marine engines toserve the increasingly dominant Chinese shipbuilding industry. Production is planned to begin in mid2014.

The Wärtsilä TMH Diesel Engine Company LLC factory is expected to begin production during the firstquarter of 2014.

In March, Wärtsilä announced the set up of a new, fully-owned manufacturing facility in Brazil to meetthe increasing market demand, particularly in the offshore market. The manufacturing premises will bebased on a multi-product factory concept for the assembly and testing of Wärtsilä’s generating setsand propulsion products. In the initial phase, activities will focus on medium sized, medium-speedgenerating sets and steerable thrusters, with the possibility to flexibly expand the product range torespond to market needs. The value of Wärtsilä’s investment is approximately EUR 20 million and thefacility is scheduled to be fully operational by mid 2014.

In February, Wärtsilä continued to expand its service network by opening a new service workshop inNiterói, Rio de Janeiro, Brazil.

Research and developmentWärtsilä continued to place strong emphasis on R&D activities during 2013, the key focus areas beingefficiency improvement, fuel flexibility, and the reduction of environmental impact. The R&D relatedexpenditure totalled EUR 185 million, which represents 4.0% of net sales.

During the review period Wärtsilä was granted a 10-year loan totalling EUR 150 million from theEuropean Investment Bank and a 10-year loan totalling EUR 50 million from the Nordic InvestmentBank for research and development financing. With these loans, Wärtsilä will further develop itsmedium-speed engine technology in terms of efficiency, reliability and environmental performance, aswell as for reducing lifecycle costs.

Wärtsilä currently has the widest portfolio of exhaust gas cleaning systems for the removal of SOx, andthe most extensive reference list on the market. The portfolio consists of open-loop, closed-loop, andhybrid systems. Wärtsilä has to date a total of 88 exhaust gas cleaning systems delivered or on order,for a total of 41 vessels.

Progress with regards to type approvals for ballast water management systems continues. InNovember, the Wärtsilä AQUARIUS UV (ultraviolet) system received United States Coast GuardAlternate Management System acceptance. In addition, Wärtsilä’s AQUARIUS EC (electro-chlorination)system was granted IMO Type Approval in December.



Product launchesIn December, Wärtsilä expanded its engine portfolio with two new auxiliary engines, the WärtsiläAuxpac 16 and the Wärtsilä Auxpac 32. The new engines offer a high level of reliability and arecompliant with the IMO’s Tier II environmental regulations. Their launch is an important step instrengthening Wärtsilä’s presence in the auxiliary engine market. Also in December, Wärtsilä launchedits new 2-speed marine gearbox. The product, which will serve vessels with multiple operationalmodes or reduced transit speeds, offers notable economic and environmental benefits. Compared to asingle mechanical propulsion system, a fuel consumption reduction of eight percent was verified withWärtsilä’s 2-speed gearbox during sea trials.

In November, Wärtsilä introduced its new low-speed dual-fuel engine technology. The benefits of thistechnology include capital expenditure reductions through a substantially simpler and lower cost LNGand gas handling system. Furthermore, the new engines are compliant with IMO Tier III emissionrequirements in gas mode. The first engine utilising this technology, the Wärtsilä RT-flex50DF, will beavailable for delivery in the third quarter of 2014.

In October, Wärtsilä released its Wärtsilä 20DF dual-fuel engine for sale in the US market. The enginemeets the United States Environmental Protection Agency’s strict Tier 4 emission requirements. A newseries of steerable and transverse thrusters was also introduced. The new thrusters have beendeveloped in response to changing market demand, which requires competitive products that aremore efficient and that cover a wider power range. Wärtsilä also launched a new Bio Seal Ring™product for maritime stern tube seal applications. The seal ring is the first in the market that works withenvironmentally acceptable lubricants for a lifetime of at least five years.

A new version of the Wärtsilä 34DF engine was launched in June. The engine offers increased poweroutput and increased efficiency in both liquid and gas operating modes, as well as lower fuelconsumption and improved environmental performance.

In March, Wärtsilä launched a unique product, the Wärtsilä GasReformer, which uses steam reformingtechnology to convert associated gas to a quality that can be used as fuel in Wärtsilä’s range of gasfuelled engines. Traditionally such gases would be flared and wasted.

Sustainable developmentWärtsilä is well positioned to reduce emissions and the use of natural resources, thanks to its varioustechnologies and specialised services. Wärtsilä’s R&D efforts continue to focus on the development ofadvanced environmental technologies and solutions. The company is committed to supporting the UNGlobal Compact and its principles with respect to human rights, labour, the environment and anti-corruption. Wärtsilä’s share is included in several sustainability indices.

Changes in the organisational structureIn August 2013, Wärtsilä announced the combination of PowerTech and Ship Power’s 4-strokeorganisation into a single business unit. The reorganisation is a continuation of the changesimplemented in 2012. It aims to further strengthen competitiveness, and to serve customers more



effectively with increased flexibility, faster decision-making, and the optimal utilisation of resources. MrRoger Holm (41), MSc (Econ.), was appointed Senior Vice President, 4-stroke, and a member of theShip Power management team as of 1 September 2013. Holm also headed the PowerTechorganisation until the changes in the organisational structure became effective on 1 January 2014.

Changes in managementMr Pierpaolo Barbone (56) MSc (Eng.) was appointed President of Services, Executive Vice Presidentand a member of the Board of Management.

Mr Jaakko Eskola (55) MSc (Eng.) was appointed Senior Executive Vice President and Deputy to theCEO. He assumed this responsibility in addition to his existing position as President of Ship Power.

Mr Marco Wirén (47), MSc (Econ.), was appointed Chief Financial Officer, Executive Vice President anda member of the Board of Management.

The previous heads of Services and PowerTech, Mr Christoph Vitzthum and Mr Lars Hellberg, haveleft Wärtsilä to pursue careers outside the company. The previous Chief Financial Officer and Deputyto the CEO, Mr Raimo Lind, reached his contractual retirement age and retired in August 2013.

Shares and shareholdersDuring January-December 2013, the volume of trades on the Nasdaq OMX exchange was 95,127,366shares, equivalent to a turnover of EUR 3,328 million. Wärtsilä's shares are also traded on alternativeexchanges, such as Chi-X, Turquoise and BATS. The total trading volume on these alternativeexchanges was 54,651,206 shares.

Shares on the Nasdaq OMX Helsinki Stock Exchange

Number ofNumber of Number ofNumber of

shares andshares and shares tradedshares traded

31.12.201331.12.2013 votesvotes 1-12/20131-12/2013

WRT1V 197 241 130 95 127 366

1.1. - 31.12.20131.1. - 31.12.2013 HighHigh LowLow AverageAverage 11 CloseClose

Share price 39.00 30.66 35.00 35.77

1 Trade-weighted average price

31.12.201331.12.2013 31.12.201231.12.2012

Market capitalisation, EUR million 7 055 6 454

Foreign shareholders, % 51.3 51.0

Flagging notifications

During the review period January-December 2013, Wärtsilä was informed of the following changes inownership:



On 25 September, BlackRock, Inc. decreased its holding in Wärtsilä. Following the transactionBlackRock Inc. owned 9,824,523 shares or 4.98% of Wärtsilä’s share capital and total votes.

On 7 February, Wärtsilä was informed that Fiskars Corporation and Investor AB had completed thelegal combination of their Wärtsilä ownership into a joint venture in accordance with a releasepublished on 24 April 2012. At the time of the announcement, the total ownership for the jointcompany, Avlis AB, and its wholly owned subsidiary, Avlis Invest AB (formerly Instoria AB), was42,948,325 or 21.77% of Wärtsilä’s share capital and votes. Fiskars owned 59.7% of Avlis AB andInvestor 40.3%.

Decisions taken by the Annual General MeetingWärtsilä’s Annual General Meeting held on 7 March 2013 approved the financial statements anddischarged the members of the Board of Directors and the company’s President & CEO from liabilityfor the financial year 2012. The Meeting approved the Board of Directors’ proposal to pay a dividendof 1.00 euro per share. The dividend was paid on 19 March 2013.

The Annual General Meeting decided that the Board of Directors has nine members. The followingwere elected to the Board: Ms Maarit Aarni-Sirviö, Mr Kaj-Gustaf Bergh, Mr Sune Carlsson, MrAlexander Ehrnrooth, Mr Paul Ehrnrooth, Mr Mikael Lilius, Ms Gunilla Nordström, Mr Markus Rauramoand Mr Matti Vuoria.

The firm of public auditors KPMG Oy Ab was appointed as the company’s auditor for the year 2013.

Authorisation to repurchase and distribute the Company’s own shares

The Board of Directors was authorised to resolve to repurchase a maximum of 19,000,000 of theCompany’s own shares. The authorisation to repurchase the Company’s own shares shall be validuntil the close of the next Annual General Meeting, however no longer than for 18 months from theauthorisation.

The Board of Directors was authorised to resolve to distribute a maximum of 19,000,000 of theCompany’s own shares. The authorisation for the Board of Directors to distribute the Company’s ownshares shall be valid for three years from the authorisation of the shareholders’ meeting and it cancelsthe authorisation given by the General Meeting on 8 March 2012. The Board of Directors is authorisedto resolve to whom and in which order the Company’s own shares will be distributed. The Board ofDirectors is authorised to decide on the distribution of the Company’s own shares other than inproportion to the existing pre-emptive right of the shareholders to purchase the Company’s ownshares.

Organisation of the Board of Directors

The Board of Directors of Wärtsilä Corporation elected Mikael Lilius as its chairman and Kaj-GustafBergh as the deputy chairman. The Board decided to establish an Audit Committee, a NominationCommittee and a Remuneration Committee. The Board appointed from among its members thefollowing members to the Committees:



Audit Committee:

Chairman Markus Rauramo, Maarit Aarni-Sirviö, Alexander Ehrnrooth

Nomination Committee:

Chairman Mikael Lilius, Kaj-Gustaf Bergh, Matti Vuoria

Remuneration Committee:

Chairman Mikael Lilius, Paul Ehrnrooth, Matti Vuoria

Board of Directors' dividend proposalThe Board of Directors proposes that a dividend of 1.05 euro per share be paid for the financial year2013. The parent company’s distributable funds total 1,027,025,847.20 euro, which includes174,475,007.05 euro in net profit for the year. There are 197,241,130 shares with dividend rights. Thedividend will be paid to shareholders who are registered in the list of shareholders maintained byEuroclear Finland Ltd on the record date, which is 11 March 2014. The dividend payment dateproposed by the Board is 18 March 2014. The Annual Report 2013, including the financial review andthe review by the Board of Directors, will be available on the company website www.wartsila.com andat www.wartsilareports.com during week 7.

Risks and business uncertaintiesIn the Power Plants business, uncertainty in the financial markets and significant currency fluctuationsmay impact financing availability and the timing of bigger projects. Lack of demand for commodities,e.g. minerals, can affect industrial customers’ investment decisions.

The business environment for the shipping and shipbuilding industry remains challenging, andconcerns over the global economy continue to cause uncertainty. Overcapacity is still a concern, asthe large order book accumulated during the shipbuilding boom has been delivered. In addition,financing remains under pressure as banks continue to be cautious. Investments in offshoreexploration and production are highly sensitive to changes in oil prices. However, current oil pricescontinue to support the offshore industry’s operational activities in harsher conditions and deeperwaters.

Continued risks in the global economy and political instability in certain areas may have a negativeimpact on Services’ order intake. The challenging conditions in several marine market segments arealso seen as a potential risk.

The Group is a defendant in a number of legal cases which arise out of, or are incidental to, theordinary course of its business. These lawsuits concern mainly issues such as contractual and otherliability, labour relations, property damage and regulatory matters. The Group receives from time totime claims of different amounts and with varying degrees of substantiation. The claims received in2013 include two unusually sizable ones. It is the Group’s policy to provide for amounts related to the



claims, as well as for the litigation and arbitration matters, when an unfavourable outcome is probableand the amount of loss can be reasonably estimated.

The annual report contains a more specific description of Wärtsilä’s risks and risk management.

Events after the reporting periodOn 29 January 2014, Wärtsilä announced plans to realign its organisation to secure future profitabilityand competitiveness. The Group-wide efficiency programme is expected to lead to a reduction ofapproximately 1,000 employees globally, of which about 200 are planned to be in Finland. Thereductions will impact all businesses and support functions. With these actions Wärtsilä seeks annualsavings of EUR 60 million. The effect of these savings is expected to materialise fully by the end of2014. The non-recurring costs related to the restructuring measures will be EUR 50 million. Of thesecosts EUR 11 million was recognised in 2013, as certain measures were initiated at the end of theyear.

Market outlookPower generation markets closely follow global macro-economic development. Uncertainty in themacro economy, combined with slow global growth projections, has impacted the power generationmarkets, leading to two consecutive years of decline. Based on the forecasted GDP growth in 2014,the overall market for liquid and gas fuelled power generation is expected to improve slightly. Orderingactivity remains focused on emerging markets, which continue to invest in new power generationcapacity. In the OECD countries, there is still pent-up power sector demand, mainly driven by CO2

neutral generation and the ramp down of older, mainly coal-based generation.

The main drivers supporting activity in the shipping and offshore sectors are in place. World seabornetrade and the world economy are showing signs of improvement, which benefits the merchantshipping market. Furthermore, the current oil price level supports activity in the offshore industry,including operations in harsh and deep water areas. The importance of fuel efficiency and theregulatory environment are clearly visible, and the interest in gas as a fuel is increasing. Overallcontracting is expected to remain at improved levels, keeping in mind the prevailing overcapacity andthe market’s limited capacity to absorb new tonnage. Due to the relatively high level of contracting inthe traditional merchant segment during 2013, a small downturn in merchant ordering activity may beseen in 2014.

The overall service market outlook remains stable. An increase in the installed base partly balances theslower service demand for older installations and the continued focus of merchant marine customerson reducing operating expenses. The outlook for services to offshore and gas fuelled vessels remainspositive. Demand for services in the power plant segment continues to be good. From a regionalperspective, the outlook for the Middle East and Asia is slightly more positive, supported by interest inpower plant related services. The outlook is also good in the Americas and Africa.



Wärtsilä's prospects for 2014Wärtsilä expects its net sales for 2014 to grow by 0-10% and its operational profitability (EBIT% beforenon-recurring items) to be around 11%.

Wärtsilä financial statements bulletin 2013This financial statements bulletin is prepared in accordance with IAS 34 (Interim Financial Reporting)using the same accounting policies and methods of computation as in the annual financial statementsfor 2012, except for the IFRS amendments stated below. All figures in the accounts have beenrounded and consequently the sum of individual figures can deviate from the presented sum figure.

Use of estimates

The preparation of the financial statements in accordance with IFRS requires management to makeestimates and assumptions that affect the valuation of the reported assets and liabilities and otherinformation, such as contingent liabilities and the recognition of income and expenses in the statementof income. Although the estimates are based on the management’s best knowledge of current eventsand actions, actual results may differ from the estimates.

IFRS amendments

Of the amended International Financial Reporting Standards (IFRS) and interpretations mandatory as of1 January 2013 the following are applicable to the Group reporting:

- Amendment to IAS 19 Employee benefits: The amendment eliminates the possibility to use thecorridor approach in recognising the actuarial gains and losses from defined benefit plans. In thecorridor approach the actuarial gains and losses had to be recognised only when they exceeded bymore than 10% the greater of the present value of the defined benefit obligation and the fair value ofthe plan assets. The excess was recognised in the statement of income over the expected averageremaining working lives of employees participating in the plan.

The revised IAS 19 standard requires the actuarial gains and losses to be recognised immediately inthe statement of other comprehensive income. This change in accounting principles leads to fasterrecognition of actuarial gains and losses than the corridor approach. As a result of the change theGroup now determines the net interest expense on the net defined benefit plan by applying thediscount rate used to measure the defined benefit obligation. Previously the Group applied a long-termrate of expected return on the plan assets. The Group reports the service cost in employee benefitexpenses and the net interest in financial expenses.

The amendments to IAS 19 have been applied retrospectively. The impact on comparison figurespresented in the condensed statement of financial position, the condensed statement of income andthe statement of other comprehensive income in this interim report, are the following. The impact onthe equity in the opening balance 2012 was EUR -33 million. Pension obligations increased by EUR 43million and working capital reduced by EUR 43 million. The impact on profit for the reporting period2012 was EUR 0 million. A table showing the impact is included in the Interim Report January-June2013.



- IFRS 13 Fair value measurement: The standard defines fair value. It sets out in a single standard aframework for measuring fair value and the requirement for disclosures about fair value measurements.The standard does not introduce any new requirements to measure at fair value. It provides guidancefor fair value measurement when other standards require or permit that.

The annual figures in this financial statements bulletin are audited.



Consolidated statement of income

Restated

MEURMEUR 20132013 20122012

Net salesNet sales 4 6544 654 4 725

Change in inventories of finished goods & work in progress 187187 -30

Work performed by the Group and capitalised 1919 15

Other operating income 8585 68

Material and services -2 696-2 696 -2 527

Employee benefit expenses -1 104-1 104 -1 094

Depreciation, amortisation and impairment -123-123 -139

Other operating expenses -543-543 -543

Share of result of associates and joint ventures 2222 9

Operating resultOperating result 500500 483

Dividend income 11 2

Interest income 33 4

Other financial income 1515 9

Interest expenses -17-17 -22

Other financial expenses -22-22 -25

Net income from available-for-sale financial assets 2525 1

Profit before taxesProfit before taxes 507507 453

Income taxes -113-113 -109

Profit for the financial periodProfit for the financial period 393393 344

Attributable to:

Equity holders of the parent company 391391 339

Non-controlling interests 33 5

393393 344

Earnings per share attributable to equity holders of the parent company:

Earnings per share (basic and diluted), EUR 1.981.98 1.72



Consolidated statement of other comprehensive income

Restated

MEURMEUR 20132013 20122012

Profit for the financial periodProfit for the financial period 393393 344

Other comprehensive income, net of taxes:Other comprehensive income, net of taxes:

Items that will not be reclassified to the statement of income:Items that will not be reclassified to the statement of income:

Remeasurement of defined benefit liability -9-9 -2

Tax on items that will not be reclassified to the statement of income -1-1 1

Total items that will not be reclassified to the statement of incomeTotal items that will not be reclassified to the statement of income -10-10 -1

Items that may be reclassified subsequently to the statement of income:Items that may be reclassified subsequently to the statement of income:

Exchange rate differences on translating foreign operations -72-72 -14

Available-for-sale financial assets

measured at fair value 11 3

transferred to the statement of income -25-25 -1

Cash flow hedges

measured at fair value -22-22 9

transferred to the statement of income -2-2 9

Tax on items that may be reclassified to the statement of income:Tax on items that may be reclassified to the statement of income:

Available-for-sale financial assets

transferred to the statement of income 66

Cash flow hedges

measured at fair value 77 -2

transferred to the statement of income 11 -2

Total items that may be reclassified to the statement of incomeTotal items that may be reclassified to the statement of income -107-107 1

Other comprehensive income for the financial period, net of taxesOther comprehensive income for the financial period, net of taxes -117-117

Total comprehensive income for the financial periodTotal comprehensive income for the financial period 276276 344

Total comprehensive income attributable to:

Equity holders of the parent company 275275 339


276276 344



Consolidated statement of financial position, assets

Restated

MEURMEUR 31.12.201331.12.2013 31.12.201231.12.2012

Non-current assetsNon-current assets

Goodwill 914914 942

Intangible assets 321321 317

Property, plant and equipment 434434 456

Investment properties 1515 14

Investments in associates and joint ventures 103103 90

Available-for-sale financial assets 1515 44

Interest-bearing investments 11 1

Deferred tax assets 128128 112

Other receivables 55 24

1 9351 935 2 000

Current assetsCurrent assets

Inventories 1 3671 367 1 322

Interest-bearing receivables 11 1

Trade receivables 1 1461 146 1 128

Current tax receivables 3333 27

Other receivables 339339 334

Cash and cash equivalents 388388 225

3 2743 274 3 036

Total assetsTotal assets 5 2095 209 5 036



Consolidated statement of financial position, equity and liabilities

Restated

MEURMEUR 31.12.201331.12.2013 31.12.201231.12.2012

EquityEquity

Share capital 336336 336

Share premium 6161 61

Translation differences -85-85 -12

Fair value reserve -13-13 21

Actuarial gains and losses -43-43 -34

Retained earnings 1 5871 587 1 393

Total equity attributable to equity holders of the parent company 1 8441 844 1 766


Total equityTotal equity 1 8841 884 1 791

LiabilitiesLiabilities

Non-current liabilitiesNon-current liabilities

Interest-bearing debt 571571 545

Deferred tax liabilities 8484 95

Pension obligations 107107 99

Provisions 4040 38

Advances received 8686 88

Other liabilities 44 3

892892 868

Current liabilitiesCurrent liabilities

Interest-bearing debt 9494 249

Provisions 204204 228

Advances received 827827 607

Trade payables 375375 385

Current tax liabilities 8181 40

Other liabilities 853853 868

2 4342 434 2 377

Total liabilitiesTotal liabilities 3 3253 325 3 245

Total equity and liabilitiesTotal equity and liabilities 5 2095 209 5 036



Consolidated statement of cash flows

Restated

MEURMEUR 20132013 20122012

Cash flow from operating activities:Cash flow from operating activities:

Profit for the financial period 393393 344

Adjustments for:

Depreciation, amortisation and impairment 123123 139

Financial income and expenses 1919 31

Selling profit and loss of fixed assets and other changes -29-29 -16

Share of result of associates and joint ventures -22-22 -9

Income taxes 113113 109

Cash flow before changes in working capital 598598 598

Changes in working capital:Changes in working capital:

Assets, non-interest-bearing, increase (-) / decrease (+) -64-64 -234

Inventories, increase (-) / decrease (+) -88-88 -6

Liabilities, non-interest-bearing, increase (+) / decrease (-) 211211 -38

Changes in working capital 6060 -278

Cash flow from operating activities before financial items and taxesCash flow from operating activities before financial items and taxes 658658 320

Financial items and taxes:Financial items and taxes:

Interest and other financial income 2323 14

Interest and other financial expenses -7-7 -71

Income taxes paid -97-97 -110

Financial items and paid taxes -81-81 -167

Cash flow from operating activitiesCash flow from operating activities 578578 153

Cash flow from investing activities:Cash flow from investing activities:

Acquisitions -392

Investments in associates and joint ventures -1-1 -7

Investments in available-for-sale financial assets -4-4 -3

Investments in property, plant and equipment and intangible assets -129-129 -111

Proceeds from sale of property, plant and equipment and intangible assets 77 12

Proceeds from sale of shares in associates and joint ventures 23

Proceeds from sale of available-for-sale financial assets 3434 3

Loan receivables, increase (-) / decrease (+) and other changes 1313 2

Dividends received 11 2

Cash flow from investing activitiesCash flow from investing activities -79-79 -471

Cash flow after investing activitiesCash flow after investing activities 499499 -318



Cash flow from financing activities:Cash flow from financing activities:

Contribution by non-controlling interests 1616

Proceeds from non-current borrowings 153153 158

Repayments and other changes in non-current loans -157-157 -92

Loan receivables, increase (-) / decrease (+) 4

Current loans, increase (+) / decrease (-) -135-135 69

Dividends paid -202-202 -186

Cash flow from financing activitiesCash flow from financing activities -324-324 -47

Change in cash and cash equivalents, increase (+) / decrease (-) 176176 -365

Cash and cash equivalents at the beginning of the financial period 225225 592

Exchange rate changes -13-13 -2

Cash and cash equivalents at the end of the financial period 388388 225



Consolidated statement of changes in equity

Total equity attributable to equity holders of the parent companyTotal equity attributable to equity holders of the parent company

Non-Non-

controllingcontrolling

interestsinterests

TotalTotal

equityequity

MEURMEUR

ShareShare

capitalcapital

ShareShare

premiumpremium

TranslationTranslation

differencedifference

FairFair

valuevalue

reservereserve

ActuarialActuarial

gains andgains and

losseslosses

RetainedRetained

earningsearnings TotalTotal

Equity on 31Equity on 31December 2011December 2011 336 61 2 5 1 233 1 636 30 1 666

Change inaccounting policy(IAS19) -33 -33 -33

Equity on 1Equity on 1January 2012,January 2012,restatedrestated 336 61 2 5 -33 1 233 1 604 30 1 633

Translationdifferences -14 -14 -14

Available-for-salefinancial assets

net change infair value, netof taxes 3 3 3

transferred tothe statementof income, netof taxes -1 -1 -1

Cash flow hedges


transferred tothe statementof income, netof taxes 7 7 7

Defined benefitplans -1 -1 -1

OtherOthercomprehensivecomprehensiveincomeincome -14 16 -1 1 1

Profit for thefinancial period 339 339 5 344

TotalTotalcomprehensivecomprehensiveincome for theincome for thefinancial periodfinancial period -14 16 -1 338 340 5 344

Total transactionsTotal transactionswith the ownerswith the ownersof the companyof the company

dividends paid -178 -178 -9 -186



Equity on 31Equity on 31December 2012December 2012 336 61 -12 21 -34 1 393 1 766 26 1 791

Total equity attributable to equity holders of the parent companyTotal equity attributable to equity holders of the parent company

Non-Non-

controllingcontrolling

interestsinterests

TotalTotal

equityequity

MEURMEUR

ShareShare

capitalcapital

ShareShare

premiumpremium

TranslationTranslation

differencedifference

FairFair

valuevalue

reservereserve

ActuarialActuarial

gains andgains and

losseslosses

RetainedRetained

earningsearnings TotalTotal

Equity on 1Equity on 1January 2013January 2013 336 61 -12 21 -34 1 393 1 766 26 1 791

Translationdifferences -73 -73 -1 -74

Available-for-salefinancial assets



Cash flow hedges

net change infair value, netof taxes -14 -14 -14


Defined benefitplans -9 -9 -9

OtherOthercomprehensivecomprehensiveincomeincome -73 -34 -9 -116 -1 -117

Profit for thefinancial period 391 391 3 393

TotalTotalcomprehensivecomprehensiveincome for theincome for thefinancial periodfinancial period -73 -34 -9 391 275 2 276

Total transactionsTotal transactionswith the ownerswith the ownersof the companyof the company

dividends paid -197 -197 -4 -201

contribution bynon-controllinginterests 16 16

Equity on 31Equity on 31December 2013December 2013 336 61 -85 -13 -43 1 587 1 844 40 1 884



Net sales by geographical areas

MEURMEUR 20132013 20122012

Europe 1 3291 329 1 202

Asia 1 7591 759 2 009

The Americas 1 0681 068 994

Other 498498 520

TotalTotal 4 6544 654 4 725

Intangible assets and property, plant & equipment

MEURMEUR 20132013 20122012

Intangible assetsIntangible assets

Carrying amount on 1 January 1 2591 259 826

Changes in exchange rates -37-37 24

Acquisitions 426

Additions 5353 41

Amortisation and impairment -58-58 -61

Disposals and reclassifications 1717 5

Carrying amount at the end of the financial periodCarrying amount at the end of the financial period 1 2351 235 1 259

Property, plant and equipmentProperty, plant and equipment

Carrying amount on 1 January 470470 472

Changes in exchange rates -12-12 1

Acquisitions 19

Additions 7676 70

Depreciation and impairment -66-66 -78

Disposals and reclassifications -20-20 -14

Carrying amount at the end of the financial periodCarrying amount at the end of the financial period 449449 470

Gross capital expenditure

MEURMEUR 20132013 20122012

Investments in securities and acquisitions 55 402

Intangible assets and property, plant and equipment 129129 111

TotalTotal 134134 513



Net interest-bearing debt

MEURMEUR 20132013 20122012

Non-current liabilities 571571 545

Current liabilities 9494 249

Loan receivables -1-1 -2

Cash and cash equivalents -388-388 -225

NetNet 276276 567

Personnel

20132013 20122012

On average 18 74918 749 18 930

At the end of the period 18 66318 663 18 887

Financial ratios

Restated

20132013 20122012

Earnings per share (basic and diluted), EUR 1.981.98 1.72

Equity per share, EUR 9.359.35 8.95

Solvency ratio, % 43.943.9 41.3

Gearing 0.150.15 0.32

Contingent liabilities

MEURMEUR 20132013 20122012

Mortgages 2626 28

Chattel mortgages and other pledges 2525 34

TotalTotal 5151 62

Guarantees and contingent liabilities

on behalf of Group companies 665665 433

on behalf of associated companies 77 9

Nominal amount of rents according to leasing contracts

payable within one year 2727 23

payable between one and five years 7878 44

payable later 2626 10

TotalTotal 803803 518



Nominal values of derivative instruments

MEURMEUR Total amountTotal amount of which closedof which closed

Interest rate swaps 125125

Inflation hedges 99

Foreign exchange forward contracts 1 5451 545 534534

Currency options, purchased 77

TotalTotal 1 6861 686 534534

Fair values

Fair value measurements at the end of the financial period:Fair value measurements at the end of the financial period:

MEURMEUR

Carrying amountsCarrying amounts

of the statementof the statement

of financialof financial

position itemsposition items

FairFair

valuevalue

Financial assetsFinancial assets

Available-for-sale financial assets (level 3) 1515 1515

Interest-bearing investments, non-current (level 2) 11 11

Other receivables, non-current (level 2) 55 55

Derivatives (level 2) 2020 2020

Financial liabilitiesFinancial liabilities

Interest-bearing debt, non-current (level 2) 571571 576576

Derivatives (level 2) 2121 2121



Condensed statement of income, quarterly

Restated Restated

MEURMEUR 10–12/201310–12/2013 7–9/20137–9/2013 4–6/20134–6/2013 1–3/20131–3/2013 10–12/201210–12/2012 7–9/20127–9/2012

Net sales 1 411 1 209 1 152 882 1 533 1 087

Other operatingincome 29 18 31 7 12 11

Expenses -1 226 -1 071 -1 046 -793 -1 343 -958

Depreciation,amortisation andimpairment -29 -30 -32 -32 -38 -33

Share of result ofassociates andjoint ventures 7 4 6 5 7 3

Operating resultOperating result 191 130 110 69 171 110

Financial incomeand expenses -11 -4 -5 1 -9 -11

Net income fromavailable-for-salefinancial assets 25

Profit before taxesProfit before taxes 181 126 104 96 162 99

Income taxes -33 -31 -25 -23 -37 -23

Profit for theProfit for thefinancial periodfinancial period 147 95 79 73 124 77

Attributable to:

Equity holders ofthe parentcompany 147 94 78 72 123 75

Non-controllinginterests 1 1 1 1 2

TotalTotal 147 95 79 73 124 77

Earnings per shareattributable toequityholders of theparent company:

Earnings perEarnings pershare, EURshare, EUR 0.74 0.48 0.39 0.37 0.62 0.38



Calculation of financial ratios

Earnings per share (EPS)Earnings per share (EPS)

Profit for the financial period attributable to equity holders of the parent company

Adjusted number of shares over the financial period

Equity per shareEquity per share

Equity attributable to equity holders of the parent company

Adjusted number of shares at the end of the financial period

Solvency ratioSolvency ratio

Equity

Total equity and liabilities – advances receivedx 100

GearingGearing

Interest-bearing liabilities – cash and cash equivalents

Equity

Return on investment (ROI)Return on investment (ROI)

Profit before taxes + interest and other financial expenses

Total equity and liabilities – non-interest-bearing liabilities – provisions, average over the financial periodx 100

Return on equity (ROE)Return on equity (ROE)

Profit for the financial period

Equity, average over the financial periodx 100

Working capital (WCAP)Working capital (WCAP)

(Inventories + trade receivables + current tax receivables + other non-interest-bearing receivables)– (trade payables + advances received + pension obligations + provisions + current tax liabilities + other non-interest-bearing liabilities)

EBITAEBITA

Operating result – non-recurring items – intangible asset amortisation related to acquisitions

28 January 2014

Wärtsilä Corporation,Board of Directors



financial statements bulletin - Wärtsilä

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